With the United States at the epicenter of a recession fueled by the mortgage and credit market crises, ripples are still being felt in the global reinsurance market. And while a stagnant economy may be keeping prices stable for many, the ever-present "elephant in the room"–the threat of another major hurricane–is forcing rate hikes for those exposed, industry players say.
Jeremy Brazil, president of Markel International Insurance Company Ltd. in London, noted that July 1 renewals were characterized by rates rising between 10- and 20 percent on U.S. catastrophe wind and earthquake coverages.
"There's probably a little more appetite with reinsurers on quake than on wind," he said, adding that with the Texas Windstorm Insurance Association, "we expect to see self-insuring and not reinsuring this year–that's probably freed up some aggregate for people in Texas."
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